Saving for College

TIAA

AARP College Savings Solutions from TIAA is an informational program designed especially for AARP members like you to learn about saving for college and 529 college savings plans.  The program provides education on 529 plans, including what they are and how they differ from other ways to save for college, the tax advantages, who manages the investment options, and how to choose a 529 college savings plan that’s right for you and your loved one.

According to the National Bureau of Economic Research (NBER) in the ten-year span between 2003 and 2013, the number of 25-years-olds with student loan debt grew from 25% to 45%.*

You only want the best for your loved ones, but the fact is, tuition for college is consistently rising. The good news is you can help ease the burden by contributing to a 529 college savings plan that offers potential tax advantages as well.

Some of the benefits of contributing to a 529 college savings plan:

  • Tax advantaged way to help save for college - potential for tax-deferred growth on any earnings
  • Use of funds at any eligible college/university across the nation and even some abroad
  • Accounts can be transferred to other eligible family members
  • Range of investment options
 

With all 529 college savings plans, any earnings used to pay for qualified higher education expenses are federal income tax-free. Some states offer additional tax benefits, such as an income tax deduction or tax credit for state residents on plan contributions. And, if you are doing estate planning, your 529 plan contributions may reduce the taxable value of your estate. Consult your tax adviser.

Designed with AARP members and their families in mind.

TIAA is working to help educate you on smarter ways to save and provide better college savings solutions. TIAA is firmly committed to your financial well-being and is a leader in helping the academic, medical, cultural, governmental and research fields plan for retirement and life’s other goals. Over 5 million individuals trust TIAA to help plan for their financial well-being.

TIAA-CREF Tuition Financing, Inc. (TFI) is a leading provider of services to state 529 college savings plans and currently acts as Plan Manager for 10 college savings plans across the country. TFI is part of the TIAA group of companies, a leading financial services provider with $854 billion in assets under management (as of December 31, 2015). 

*Source: "Is There a Better Way to Deal With Student-Loan Debt?” National Journal, February 9, 2015 

 

The information presented on this website is for informational purposes only and does not constitute an offer to sell any security referenced on this site.

 

AARP College Savings Solutions from TIAA is a program offered by TIAA and not AARP or its affiliates. TIAA pays a royalty fee to AARP for the use of its name. These fees are used for the general purposes of AARP. AARP does not employ or endorse TIAA associates. Please contact TIAA directly for details.

 

Before investing in a 529 plan, you should consider whether the state you or your designated beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state's 529 plan. Non-qualified withdrawals may be subject to federal and state taxes and the additional federal 10% tax. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.